The pandemic has reshaped shopping habits online, and new consumer behaviors are here to stay. Over three quarters of online shoppers in Singapore now say they are onboard with cross-border shopping, nearly double the number who were receptive to the idea before the pandemic.
Convenience has shaped up to be a key reason for online shopping, given Singapore’s work-focused culture that keeps Singaporeans very busy. 55% of online shoppers don’t mind paying more for a convenient shopping experience.
These insights from PayPal’s latest market research, Borderless Commerce Report 2022, show that Singapore businesses will have to design an online shopping experience that promotes convenience and fast delivery.
But competition has also increased, given Singapore consumers are now much more prepared to shop internationally.
The market research, conducted between December 2021 and January this year, will help businesses make decisions on adapting to the evolving consumer trends. As PayPal recommends, businesses must invest in the mobile-user experience and ensure it is enhanced for online purchases. It also highlights the need to maintain a strong brand presence on social media to gain shoppers’ attention.
Key highlights from PayPal’s Borderless Commerce 2022 Report
Merchants must strengthen social media and mCommerce to attract local and international online shoppers
- Globally, 57% of all online shoppers surveyed currently shop internationally. Singapore is well-ahead, with 79% of online shoppers surveyed shopping cross-border.
- Singapore eCommerce spending is expected to grow 18.3% in 2022, with a compound annual growth rate of 16.2%.
- The top three markets where Singaporeans shop cross-border are: China (59%), USA (29%), and South Korea (19%)
- Over three-quarters of all Singaporean online shoppers are on board with cross-border shopping, nearly double pre-pandemic levels
- Social media is the next new marketplace and merchants must optimize mCommerce experience to get ahead in Singapore’s eCommerce scene
- Singapore has one of the highest smartphone (88%) and internet (89%) penetration rates in the region.
- Social network user penetration is parked at 74%, growing annually by 1-2%. Brands looking to penetrate the local market must build a strong social media presence.
- 84% of online shoppers make purchases via smartphone, with only 8% of Singaporeans prefer buying exclusively in person.
Domestic shoppers value convenience and easy purchasing methods
- Convenience is key as 55% of online shoppers are willing to pay more for a convenient buying experience. Quick delivery is also important, with one-third of buyers using services that provides on-demand domestic delivery.
- Singaporean shoppers prefer easy purchasing methods, yet credit card usage has seen a 11% decrease from last year, prompting the need for merchants to further expand payment options.
- Singaporean shoppers are buying clothing in high numbers – a full 8% above the global average. Residents love following major fashion brands in the region through large outlets, such as Zalora, and favor local labels as well
Adopting an omnichannel approach can help merchants foster customers’ satisfaction and loyalty
- 84% of Singaporean shoppers choose online marketplaces to shop cross-border, versus brand’s own website (36%)
- Partnering with large online marketplaces will help drive greater omni-channel opportunities, leading to greater customer base.